KARACHI, Jan 26: Trading on the stock market on Monday resumed on an improved note ahead of board meeting of the Pakistan Petroleum and rumours of second interim dividend but late selling in some of the oil giants again pushed it down in the minus column.

NI-managed fund buying was witnessed on some of the counters to support the falling market but the amount of Rs300 billion was said to be too small to initiate recovery and lure other investors back into the arena, said a leading analyst.Pressure on liquidity, high CFS rates and foreign selling intercepted the initial rally on active profit-selling at the rising prices on some of the blue chips, he added.

The opening was, however, a bit promising as the KSE index was early quoted higher by 29 points at 4,958, but as the interim accounts of the oil giant Pakistan Petroleum showed a modest dent in its earnings and omission of widely speculated second interim of Rs3 per share triggered fresh selling in the base shares. It closed the session, off Rs7.23 on 1.484m shares.

It ended the session, with a fresh fall of 114.21 points or 2.32 per cent, taking its junior partner along with it, which also shed another 116.96 points or 2.57 per cent at 4,428.10.

The market capital recorded a fresh fall of Rs33.119 billion at Rs1,544.397 billion, a net erosion of about $60 billion during the last about six month in the post-cap trading.

Analysts said selective buying was witnessed on some of the counter having potential of capital gains as was reflected by sharp increase in the turnover figure but some others said the figure reflects a judicious blend of both selling and buying.

“The future market direction was largely based on the higher earnings by the oil sector, which is capable of putting the entire market along with it on the path of recovery,” they said “but as the future financial indicators are not in line with the analyst perceptions there could be fresh jolts here and there.”

With working results of major fertiliser companies sans Dawood Hercules are already out and now may not have any relevance to the market trend, other may not assume the role of market trend setters in the absence of banks, most of which are already the victim of persistent selling followed by the insurance sector groaning under the weight of mounting claims, some others said.

Minus signs again held a strong lead over the gainers at 50 to 178, with 10 shares holding on to the last levels, major losers being Rafhan Maize and Unilever Pakistan, which were quoted further lower by Rs83.15 to 81.06, respectively.

They were followed by MCB, National Refinery, Mari Gas,